COMPLIANCE WITH FOOD SAFETY STANDARD IN NILE PERCH IN TANZANIA: IS INDUSTRY RE-ORGANIZATION ONE OF THE EFFECTS

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• COMPLIANCE WITH FOOD SAFETY STANDARD IN NILE
  PERCH IN TANZANIA IS INDUSTRY RE-ORGANIZATION
  ONE OF THE EFFECTS
• Ms. Z. Mpenda, N.Y. Mdoe and K. Karantininis

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Objective

• The rejection of Nile perch products by the
  importing markets through the import bans in
  1997/98 and 1999/2000 forced the industry to
  respond to the export market requirements of
  meeting the food safety standards.
• In Tanzania the stakeholders in the Nile perch
  industry responded immediately after the first
  ban. The responses brought about changes in the
  organization of the players and activities in the
  industry.
• Thus the objective of this paper is to assess the
  effects of implementation of food safety
  standards in the organization of stakeholders in
  Nile perch industry.

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Methodology

• The study findings are based surveys conducted in
  three different periods in 2006 and 2007
• A visit to different institutes aimed at
  identifying their involvement in the industry,
  their core responsibilities in relation to food
  safety standards and views on changes that have
  occurred as a result of compliance. The interview
  was carried out using checklist.
• A focus group discussion was held at New Igombe
  landing site, Ilemela district aimed at- (i)
  identifying effects of compliance (ii) validating
  the categories of fishermen and agents, (iii) get
  the general picture of fishing investments,
  (iv)identifying costs to fishermen and agents.
  The focus group was comprised with ten people
  including four fishermen, three agents, two
  village leaders and one dealer. The selection was
  random based on their perception of categories
  that exist in each group.
• The questionnaire was used to gather information
  from a representative sample of fishermen and
  agents. The questionnaire focused on
  characteristics of the representative sample,
  relations of actors in the supply chain, food
  safety standards compliance requirements, cost
  and benefit of compliance. The sample included
  130 fishermen and 130 agents. These were selected
  randomly from three districts of Ilemela,
  Sengerema and Ukerewe covering 31 landing sites.
  Two districts of Magu and Geita could not be
  visited because of heavy rains during the time of
  survey.
• A questionnaire was also prepared for processors
  and sent to them to be filled. Only one of the
  processors responded to the questionnaire.
  However, prior to sending the questionnaires an
  interview was carried to all five processing
  plants using questions guideline to assess their
  view on food safety standards costs and benefits.

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Background

• Direct processing and export of Nile perch from
  Tanzania started in 1990 after the launch of
  government regulation that prohibited export of
  whole Nile perch to Kenya.
• Tanzania is exporting fresh and frozen fillet to
  European, United Stated of America (USA), Japan,
  Israel, East Asia and regional market. The local
  market consumes only a small portion of the
  fillet production (1).
• the fishing activities were conducted under the
  auspices Tanzania regulations of 1970, which have
  all the necessary requirements for quality
  processing rules based on Good Manufacturing
  Practices (GMP) and Good Hygiene Practices (GHP).
• Inadequate enforcement
• Inadequate GMP and GHP for example fish
  processing plants were established on hired or
  purchased former cotton ginnery warehouses with
  minimal renovations
• TBS standards on fish such as water used in
  industry 931980 fresh fish handling and
  processing code of hygiene 1861983 frozen fish
  handling 3451983 and microbial 4021988)
• Other ill effects of inadequate enforcement
• Establishment of Use of un-sustainable fishing
  methods such as gillnets of small sizes that
  catch all sizes of fish, and beach seine which
  destroys fish breeding sites
• Influx of large number of fishermen in the lake
  that threatened fish stocks signalling depletion
  this is because there was no special central
  registration and licensing system (Gibbon, 1997)
• - Why inadequate enforcement institutional
  vacuum

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• Figure 1 Nile Perch Supply Chain before
  implementation of Food Safety Regulations

Source Constructed from various literatures
(Gibbon, 1997, Henson and Mitullah, 2004)
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Background continue

• Use of simple fishing equipments minimum
  investment
• 1997/98 and 1999/2000 there were import bans by
  the EC based on non compliance to food safety
  standards.

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Responses from different categories of industry
players
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Public/governmentresponses

• The export of Nile perch in general facilitated
  the review of Tanzanian fisheries policy in 1997
  focusing on (i) improving the fishing sector to
  meet the demands of export markets and (ii)
  enforcement of the regulations using
  participatory methods.
• The government action was on time with the import
  ban in 1997/98 which facilitated more involvement
  in terms of supervision and monitoring of fishery
  activities in marine and water bodies in
  Tanzania.
• To achieve this, there was a need for
  institutional capacity building
• review of rules and regulations to reflect the
  reviewed fisheries Act 1970 as amended in 2003

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Public/governmentresponses continue

• The reviewed rules and regulations brought
  changes in the organizational set up and
  responsibilities in the fisheries sector This
  was intensified by the complexity of HACCP
  implementation and inadequate capacity to monitor
  and audit the quality system
• Formation of competent authority FD approved
• Establishment of zone offices with emphasis on
  quality control
• Training of fisheries officers on issues of food
  safety standards
• Acquiring improved technologies laboratory
  equipments, laboratory accreditation
• TBS with 3 parameters- total plate count, total
  coliform, E.coli
• Nyegezi with 6 parameters-total plate count,
  total coliforms, salmonella spp, vibrio cholerae,
  staphylococcus aureus and enterobacteriaceae
• Improving fishing environment landing sites

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Public/governmentresponses continue

• To improve the enforcement of the rules and
  regulations the government had to
• Forge Public-private partnership
• government has supported implementation of HACCP
  through accessibility to HACCP initial training
  and advice through fisheries zone office
• The zone officers provide day to day advice to
  processors on quality system operations
• Processors provide training to fishermen and
  agents through Fish Technologist Association
• Processors contribution in improvement of fishing
  environment average US 30 000 per processor
• Encourage community participation through Beach
  Management Systems

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Industry operators Fishermen responsesIncrease
in number of motorized fishing boats
Item 1998 2002 2004
Landing sites 594 570
Fishermen 20,084 80,053 76,749
Fishing Vessels 4,155 21,660 22,272
Outboard engine 146 2,610 5,270
Gill nets 98,004 425,888 578,617
Beach seines 1,713 1,454 1,525
Source extracted from Tanzania Fisheries Annual
Survey report 2004
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Fishermens source of funds for purchase of
fishing boats and engine
Source of fund Fishermen size Fishermen size Fishermen size Fishermen size Fishermen size Fishermen size
Source of fund Small Scale Small Scale Medium Scale Medium Scale Large scale Large scale
Source of fund Boat Engine Boat Engine Boat Engine
Bank Loan 0.0 0.0 6.3 0.0 20.8 5.0
Loan from processor 0.0 0.0 25.0 26.7 58.3 70.0
Cash 91.1 0.0 68.8 73.3 16.7 20.0
Inheritance 8.9 0.0 0.0 0.0 4.2 5.0
Source Survey data, 2006
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Category of fishermen

• Category of fishermen by means of accessing of
  funds for investment capita
• Fishermen with hiring equipments
• Fishermen with loaned equipments
• Independent fishermen use own funds
• Business size
• Small scale man-powered boats
• Medium scale use not more than 5 engine boats
• Large scale use more than 5 engine boats and own
  fish collection boat

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Fishermen mean level of investments capital for
boat and engine (US)
Fishermen Category Level of investment by fishermen size Level of investment by fishermen size Level of investment by fishermen size
Fishermen Category Small scale Medium scale Large scale
N 100 14 21
Fishermen with loaned equipment 5 925.33 na 50 215.54
Independent fishermen 1 800.42 16 520.04 99 239.71
Source Survey data, 2006
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Fish handling methods by category of fishermen
Fishermen size Fish handling Category of fishermen Category of fishermen Category of fishermen
Fishermen size Fish handling Hire in loaned independent
Small scale Use of ice 37.5 100 24.4
Small scale Frequent commute to collection boat 0 0 1.2
Small scale Early delivery at landing site 62.5 0 74.4
Medium scale Use of ice Na 100 54.5
Medium scale Frequent commute to collection boat Na 0 9.1
Medium scale Early delivery at landing site Na 0 36.4
Large scale Use of ice 100 78.9 75.0
Large scale Frequent commute to collection boat 15.4
Large scale Early delivery at landing site 7.7 25.0
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Fishing Labour Requirement and payment methods

• Fishermen employ casual labour to carry out daily
  activities such as fishing, guards and net
  menders. Almost all of the fishermen who were
  interviewed hire 4 casual labourers per day per
  boat, 2 guards for 10 boats and about 20 net
  menders when need be
• Payment to the fishing labourers ranges from cash
  to crop share. Cash payments are per fishing trip
  and the amount ranges from US 30 to US 50.
• Crop share differs from one landing site to
  another. During field survey two types of crop
  share were observed-
• payment by percentage of day harvest, for
  example
• at Igombe landing site casual labourers are paid
  30 of the harvest.
• at Kome island, the harvest are divided into 10
  for food to both casual labourers and the owner,
  30 for boat fuel, 20 for casual labourers, 5
  for net menders and the remaining 35 goes to the
  owner of the boat.
• Payment by harvesting turns whereby after every
  four harvest the fifth goes to the casual
  labourers.
• Payment to security guards is on monthly cash
  basis at a rate of US 30 to US 60 per person.
• The cooks, net menders and boat repairs are paid
  both on cash and food share

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Market and prices for Fishermen

• Percentage of fish sales by fishermen to
  different buyers

Main Buyer Size of fishermen Size of fishermen Size of fishermen
Main Buyer Small scale Medium scale Large scale
Processor 2.8 33,3 10.5
Fishermen 5.7 0.0 10.5
Agents 91.5 66.7 78.9
Total 100.0 100.0 100.0
Source Field survey, 2006
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Mean fish selling price (US) by category of
fishermen
Fishermen Category Selling price in US by fishermen size Selling price in US by fishermen size Selling price in US by fishermen size
Fishermen Category Small scale Medium scale Large scale
Fishermen with hire in equipments 1.23 1.50
Fishermen with loaned equipment 1.35 1.44 1.45
Independent fishermen 1.28 1.30 1.45
Source Survey data, 2006
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Volumes of fish rejects by category of fishermen
(Kg)
Fishermen Category Volume of fish rejects (kg) by fishermen size Volume of fish rejects (kg) by fishermen size Volume of fish rejects (kg) by fishermen size
Fishermen Category Small scale Medium scale Large scale
Fishermen with hire in equipments 228 336
Fishermen with loaned equipment 41 570 660
Independent fishermen 236 796 805
Source Survey data, 2006
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Industry operators Traders responsesNew
requirements by traders to meet quality and
safety standards
Area of concern New activity Average cost/unit in US
Fish collection boat Complete fishing boat with partition of pens using fibre materials 15 000
Fishing boat Repair of fibre pens - labour 40
Fish collection trucks Cold trucks 7 000
Handling Mashed ice per kg 0.7
Handling gears (overcoat, gumboots etc) per person 50
Ice container 45
Fish inspection
Cleanness Detergents 20
Traders Training
Records Records and documentation
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Traders responses continue

• Most of the agents acquired their equipment on
  loans from the processors.
• The loans are provided for five tons trucks or 15
  tons collection vessels.
• To get equipments from the processors, an agents
  have to
• create trust to processors by supplying them with
  fish for some time or
• be introduced by agents who have already build
  goodwill with a processor.
• pay a non refundable fee of US 200.and
• a guarantor who should be well known to the
  processor
• Supply contracts with price are set on 3 days
  basis.

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Labour payments

• Most agents employ 3 casual labourers on average.
  
• In addition to the 3 employees, each truck has an
  inspector from the processing plant to check on
  fish quality and weight.
• Payment to labourers is either in cash or fish
  share.
• Cash payment is on a daily basis or per trip. For
  those who are paid daily the rate ranges from US
  3 to US 5. For those who are paid cash per trip
  the amount ranges from US 25 to US 30.
• Fish share, most agreements are based on trips
  whereby labourers are paid 35 to 40 of the
  value of total fish catch per trip.
• To ensure quality and adequate fish, agents
  provide fishermen
• with ice on agreement that they will sell their
  catch to them. However, the agreement is not
  price binding as fishermen sell at the market
  existing price.
• Loaned fishing gears to fishermen. The repayment
  of the loan is not fixed it depends on the amount
  of fish catch and how quickly the fisherman wants
  to be free from the agent. Most of these
  agreements are based on trust and mutual
  understanding

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Industry operators Processors

• Compliance requirements
• HACCP design and implementation
• Laboratory for monitoring quality
• Production layout, washable surfaces
• Modern machines and equipments
• Production of other Nile perch products such as
  fish maws, fish chips, carcass

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Conclusion and recommendations

• The importance of compliance to food safety
  standards in fresh and processed food in
  accessing export market today cannot be
  over-emphasized. However, the quality systems
  introduced are relatively new in many exporting
  countries thus complicate its implementation.
  Most exporting countries require major
  institutional capacity changes in terms of
  technology, skills and finance to address and
  implement the systems
• Nile perch fillets from Tanzania has been
  exported to Europe since mid 1980s, however, the
  imports bans in 1997/98 and 1999/2000 based on
  non compliance to food safety standards created a
  shock to the government and the industry which
  required immediate attention that resulted into
  changes in the organization of the industry.
• The pressure to meet the standards forced
  governments to enforce national standards
  stipulated in national rules and regulations in
  addition to adapting international standards. In
  the process new strategy of quality control were
  formed such as zone offices, private-public
  partnership and community participation, new
  technology such as accredited laboratory and new
  skills such as quality systems auditing were
  acquired.

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Conclusion and recommendations continued

• At the industry level, high investments to
  players in the supply chain forced them to forge
  inter- and intra firm relationships to ensure
  access to improved technology, finance, quality
  products and markets at reasonable costs.
• As much as compliance to food safety standards
  has increased exports values, there some hidden
  effects that needs to be addressed nationally.
  These include access to finance by fishermen and
  agents, unfavourable selling contracts, few local
  investors in Nile perch processing and over
  fishing.
• Recommendations on the above are to provide
  suitable environment for accessing finance,
  training of fishermen on contract procedures and
  negations, encourage partnership between
  foreigners and nationals in fish processing,
  provide written guidelines on investment on fish
  processing and increase efficiency of
  surveillance for sustainable fishing.

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• Thank you